Dawlance is Pakistan’s leading producer of innovative home appliances and a wholly-owned subsidiary of Arcelik A.S. Turkiye – the 2nd largest manufacturer of home appliances in Europe. The Chief Executive Officer of Dawlance – Mr. Umar Ahsan Khan recently held a meeting with a Senate Finance Committee, to highlight the adverse economic impact of the current interruption in Pakistan’s imports.
The participants discussed critical issues; as the shortage of foreign-currency reserves in Pakistan, has driven the State Bank of Pakistan (SBP) to curtail the imports of many important commodities, raw materials and goods, over the past many months. Even large-scale industries are not allowed to open LCs for importing raw materials essential for their operations. Dawlance’s shipments of raw materials and components have also been blocked, halting the manufacturing operations since January for all products that are not only sold locally but exported to other countries too.
Expressing his concerns about this crisis, Mr. Umar Ahsan Khan said: “Restrictions were placed on Dawlance’s imports, from May to August 2022, so we were not able to open any LCs for ‘Chapter 84 and 85 items’. From August till December 2022, we were instructed by the State Bank to work under a quota of 38% of our past year’s imports, forcing our company to significantly reduce production. Even this small quota was not received in full, or on time.” On 27th December, the SBP instructed all the banks to prioritize the LCs for essential items like; food, fuel, fertilizers, only.
The Government has been requested to consider Dawlance as a special case because most of its products are essential for food preservation and hygiene, so it is playing a key role in the well-being of common families and ensuring public health. Therefore, it may be categorized as an industry which is allowed to import its raw materials for production. The Chairman committee Mr Saleem Mandviwalla asked the Governor of SBP to look into resolving the issues being faced by this very important Turkish investor in Pakistan.
Since its 100% acquisition by Arcelik, in 2016, Dawlance has not remitted out of Pakistan any dividend, royalty or technical fee to Arcelik. Dawlance pays approximately PKR 15 Billion annually, as taxes and duties to the Government of Pakistan, besides providing employment to more than 4,500 Pakistanis. The company is transferring technologies and contributing great value to Pakistan’s socioeconomic growth and sustainability.
Pakistan Government must understand that clear and consistent, long-term policies and a business-friendly environment are needed to attract and retain foreign investments, for the sake of stabilizing the national economy, during these challenging times. Dawlance is committed to play a pivotal role in implementing the “Make in Pakistan” policy.